180 economists oppose tax hike

A letter signed by 180 economists opposed to tax increases as part of a fiscal cliff deal will be delivered to Congress on Wednesday, according to a national anti-tax group.

The letter argues that hiking tax rates would have a “significant, negative impact on the economy” and is slated to be sent to Capitol Hill on Wednesday, said Pete Sepp, executive vice president of the National Taxpayers Union, the low-taxes advocacy group that coordinated the effort.

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“This was organized … in order to provide some perspective that’s often overlooked in Washington amid hotly contested and hotly political negotiations: the fact that the economic policy community has a contribution to make here,” Sepp told POLITICO. “We hope that members of Congress will take a step back to read this statement and understand there’s much more at stake here than just some political fortunes. There are genuine policy questions that need to be resolved and resolved properly.”

The letter’s signatories include Douglas Holtz-Eakin, who directed the Congressional Budget Office under President George W. Bush, and Jim Miller, who directed the Office of Management and Budget under President Ronald Reagan.

“Increasing taxes would likely slow or reverse our nation’s fragile economic recovery and undermine long-term growth,” the letter reads in part. “Restraining the growth of expenditures, however, would help stabilize the government’s fiscal imbalance and create a more conducive environment for robust expansion.”

The Obama administration has advocated raising tax rates on household incomes above $250,000 but argued that the middle class should be shielded from those hikes.